[Congressional Record Volume 160, Number 73 (Wednesday, May 14, 2014)]
[Senate]
[Pages S3033-S3043]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3065. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                 TITLE _--FOREIGN EARNINGS REINVESTMENT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Foreign Earnings 
     Reinvestment Act''.

     SEC. _02. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION 
                   FOR DIVIDENDS RECEIVED FROM A CONTROLLED 
                   FOREIGN CORPORATION.

       (a) Applicability of Provision.--
       (1) In general.--Subsection (f) of section 965 is amended 
     to read as follows:
       ``(f) Election; Election Year.--
       ``(1) In general.--The taxpayer may elect to apply this 
     section to--
       ``(A) the taxpayer's last taxable year which begins before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, or
       ``(B) the taxpayer's first taxable year which begins during 
     the 1-year period beginning on such date.

     Such election may be made for a taxable year only if made on 
     or before the due date (including extensions) for filing the 
     return of tax for such taxable year.
       ``(C) Election year.--For purposes of this section, the 
     term `election year' means the taxable year--
       ``(i) which begins after the date that is one year before 
     the date of the enactment of the Foreign Earnings 
     Reinvestment Act, and
       ``(ii) to which the taxpayer elects under paragraph (1) to 
     apply this section.''.
       (2) Conforming amendments.--
       (A) Extraordinary dividends.--Section 965(b)(2) is 
     amended--
       (i) by striking ``June 30, 2003'' and inserting ``April 30, 
     2014'', and
       (ii) by adding at the end the following new sentence: ``The 
     amounts described in clauses (i), (ii), and (iii) shall not 
     include any amounts which were taken into account in 
     determining the deduction under subsection (a) for any prior 
     taxable year.''.
       (B) Determinations relating to related party 
     indebtedness.--Section 965(b)(3)(B) is amended by striking 
     ``October 3, 2004'' and inserting ``April 30, 2014''.
       (C) Determinations relating to base period.--Section 
     965(c)(2) is amended by striking ``June 30, 2003'' and 
     inserting ``April 30, 2014''.
       (b) Deduction Includes Current and Accumulated Foreign 
     Earnings.--
       (1) In general.--Paragraph (1) of section 965(b) is amended 
     to read as follows:
       ``(1) In general.--The amount of dividends taken into 
     account under subsection (a) shall not exceed the sum of the 
     current and accumulated earnings and profits described in 
     section 959(c)(3) for the year a deduction is claimed under 
     subsection (a), without diminution by reason of any 
     distributions made during the election year, for all 
     controlled foreign corporations of the United States 
     shareholder.''.
       (2) Conforming amendments.--
       (A) Section 965(c), as amended by subsection (a), is 
     amended by striking paragraph (1) and by redesignating 
     paragraphs (2), (3), (4), and (5), as paragraphs (1), (2), 
     (3), and (4), respectively.
       (B) Paragraph (4) of section 965(c), as redesignated by 
     subparagraph (A), is amended to read as follows:
       ``(4) Controlled groups.--All United States shareholders 
     which are members of an affiliated group filing a 
     consolidated return under section 1501 shall be treated as 
     one United States shareholder.''.
       (c) Amount of Deduction.--
       (1) In general.--Paragraph (1) of section 965(a) is amended 
     by striking ``85 percent'' and inserting ``75 percent''.
       (2) Bonus deduction in subsequent taxable year for 
     increasing jobs.--Section 965 is amended by adding at the end 
     the following new subsection:
       ``(g) Bonus Deduction.--
       ``(1) In general.--In the case of any taxpayer who makes an 
     election to apply this section, there shall be allowed as a 
     deduction for the first taxable year following the election 
     year an amount equal to the applicable percentage of the cash 
     dividends which are taken into account under subsection (a) 
     with respect to such taxpayer for the election year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is the amount which bears the 
     same ratio (not greater than 1) to 10 percent as--
       ``(A) the excess (if any) of--
       ``(i) the qualified payroll of the taxpayer for the 
     calendar year which begins with or within the first taxable 
     year following the election year, over
       ``(ii) the qualified payroll of the taxpayer for calendar 
     year 2013, bears to
       ``(B) 10 percent of the qualified payroll of the taxpayer 
     for calendar year 2013.
       ``(3) Qualified payroll.--For purposes of this paragraph:
       ``(A) In general.--The term `qualified payroll' means, with 
     respect to a taxpayer for any calendar year, the aggregate 
     wages (as defined in section 3121(a)) paid by the corporation 
     during such calendar year.
       ``(B) Exception for changes in ownership of trades or 
     businesses.--

[[Page S3034]]

       ``(i) Acquisitions.--If, after December 31, 2012, and 
     before the close of the first taxable year following the 
     election year, a taxpayer acquires the trade or business of a 
     predecessor, then the qualified payroll of such taxpayer for 
     any calendar year shall be increased by so much of the 
     qualified payroll of the predecessor for such calendar year 
     as was attributable to the trade or business acquired by the 
     taxpayer.
       ``(ii) Dispositions.--If, after December 31, 2012, and 
     before the close of the first taxable year following the 
     election year, a taxpayer disposes of a trade or business, 
     then--

       ``(I) the qualified payroll of such taxpayer for calendar 
     year 2013 shall be decreased by the amount of wages for such 
     calendar year as were attributable to the trade or business 
     which was disposed of by the taxpayer, and
       ``(II) if the disposition occurs after the beginning of the 
     first taxable year following the election year, the qualified 
     payroll of such taxpayer for the calendar year which begins 
     with or within such taxable year shall be decreased by the 
     amount of wages for such calendar year as were attributable 
     to the trade or business which was disposed of by the 
     taxpayer.

       ``(C) Special rule.--For purposes of determining qualified 
     payroll for any calendar year after calendar year 2014, such 
     term shall not include wages paid to any individual if such 
     individual received compensation from the taxpayer for 
     services performed--
       ``(i) after the date of the enactment of this paragraph, 
     and
       ``(ii) at a time when such individual was not an employee 
     of the taxpayer.''.
       (3) Reduction for failure to maintain employment levels.--
     Paragraph (4) of section 965(b) is amended to read as 
     follows:
       ``(4) Reduction in benefits for failure to maintain 
     employment levels.--
       ``(A) In general.--If, during the period consisting of the 
     calendar month in which the taxpayer first receives a 
     distribution described in subsection (a)(1) and the 
     succeeding 23 calendar months, the taxpayer does not maintain 
     an average employment level at least equal to the taxpayer's 
     prior average employment, an additional amount equal to 
     $75,000 multiplied by the number of employees by which the 
     taxpayer's average employment level during such period falls 
     below the prior average employment (but not exceeding the 
     aggregate amount allowed as a deduction pursuant to 
     subsection (a)(1)) shall be taken into income by the taxpayer 
     during the taxable year that includes the final day of such 
     period.
       ``(B) Average employment level.--For purposes of this 
     paragraph, the taxpayer's average employment level for a 
     period shall be the average number of full-time United States 
     employees of the taxpayer, measured at the end of each month 
     during the period.
       ``(C) Prior average employment.--For purposes of this 
     paragraph, the taxpayer's `prior average employment' shall be 
     the average number of full-time United States employees of 
     the taxpayer during the period consisting of the 24 calendar 
     months immediately preceding the calendar month in which the 
     taxpayer first receives a distribution described in 
     subsection (a)(1).
       ``(D) Full-time united states employee.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `full-time United States 
     employee' means an individual who provides services in the 
     United States as a full-time employee, based on the 
     employer's standards and practices; except that regardless of 
     the employer's classification of the employee, an employee 
     whose normal schedule is 40 hours or more per week is 
     considered a full-time employee.
       ``(ii) Exception for changes in ownership of trades or 
     businesses.--Such term does not include--

       ``(I) any individual who was an employee, on the date of 
     acquisition, of any trade or business acquired by the 
     taxpayer during the 24-month period referred to in 
     subparagraph (A), and
       ``(II) any individual who was an employee of any trade or 
     business disposed of by the taxpayer during the 24-month 
     period referred to in subparagraph (A) or the 24-month period 
     referred to in subparagraph (C).

       ``(E) Aggregation rules.--In determining the taxpayer's 
     average employment level and prior average employment, all 
     domestic members of a controlled group shall be treated as a 
     single taxpayer.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3066. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted 
an amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 123.
       Strike section 121.
                                 ______
                                 
  SA 3067. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted 
an amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

                                 ______
                                 
  SA 3068. Mr. McCAIN (for himself, Mr. Coburn, and Mr. Lee) submitted 
an amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike section 129.
                                 ______
                                 
  SA 3069. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. EMPLOYEE PAYROLL TAX HOLIDAY FOR NEWLY HIRED 
                   VETERANS.

       (a) In General.--Subsection (d) of section 3111 is amended 
     to read as follows:
       ``(d) Special Exemption for Eligible Veterans Hired During 
     Certain Calendar Quarters.--
       ``(1) In general.--Subsection (a) shall not apply to 50 
     percent of the wages paid by the employer with respect to 
     employment during the holiday period of any eligible veteran 
     for services performed--
       ``(A) in a trade or business of the employer, or
       ``(B) in the case of an employer exempt from tax under 
     section 501(a), in furtherance of the activities related to 
     the purpose or function constituting the basis of the 
     employer's exemption under such section.
       ``(2) Holiday period.--For purposes of this subsection, the 
     term `holiday period' means the period of 4 consecutive 
     calendar quarters beginning with the first day of the first 
     calendar quarter beginning after the date of the enactment of 
     the EXPIRE Act of 2014.
       ``(3) Eligible veteran.--For purposes of this subsection--
       ``(A) In general.--The term `eligible veteran' means a 
     veteran who--
       ``(i) begins work for the employer during the holiday 
     period,
       ``(ii) was discharged or released from the Armed Forces of 
     the United States under conditions other than dishonorable, 
     and
       ``(iii) is not an individual described in section 51(i)(1) 
     (applied by substituting `employer' for `taxpayer' each place 
     it appears).
       ``(B) Veteran.--The term `veteran' means any individual 
     who--
       ``(i) has served on active duty (other than active duty for 
     training) in the Armed Forces of the United States for a 
     period of more than 180 days, or has been discharged or 
     released from active duty in the Armed Forces of the United 
     States for a service-connected disability (within the meaning 
     of section 101 of title 38, United States Code),
       ``(ii) has not served on extended active duty (as such term 
     is used in section 51(d)(3)(B)) in the Armed Forces of the 
     United States on any day during the 60-day period ending on 
     the hiring date, and
       ``(iii) provides to the employer a copy of the individual's 
     DD Form 214, Certificate of Release or Discharge from Active 
     Duty, that includes the nature and type of discharge.
       ``(4) Election.--An employer may elect not to have this 
     subsection apply. Such election shall be made in such manner 
     as the Secretary may require.
       ``(5) Coordination with work opportunity credit.--For 
     coordination with the work opportunity credit, see section 
     51(3)(D).''.
       (b) Coordination With Work Opportunity Credit.--
       (1) In general.--Paragraph (3) of section 51(d) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(D) Denial of credit for veterans subject to 50 percent 
     payroll tax holiday.--If section 3111(d)(1) (as amended by 
     the EXPIRE Act of 2014) applies to any wages paid by an 
     employer, the term `qualified veteran' does not include any 
     individual who begins work for the employer during the 
     holiday period (as defined in section 3111(d)(2)) unless the 
     employer makes an election not to have section 3111(d) 
     apply.''.
       (2) Conforming amendment.--Subsection (c) of section 51 of 
     such Code is amended by striking paragraph (5).
                                 ______
                                 
  SA 3070. Mrs. SHAHEEN submitted an amendment intended to be proposed

[[Page S3035]]

by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. __01. POINT OF ORDER AGAINST LEGISLATION THAT WOULD 
                   AUTHORIZE STATES TO REQUIRE REMOTE SALES TAX 
                   COLLECTION WITHOUT CERTAIN LIMITATIONS.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, motion, amendment, or 
     conference report that authorizes States to require remote 
     sales tax collection unless such legislation includes 
     language similar to the model limitation in subsection (b).
       (b) Model Limitation.--The model limitation under this 
     subsection is as follows:
       (1) In general.--The authority of any State to require 
     remote sales tax collection shall not apply with respect to 
     any remote seller that is not a qualifying remote seller.
       (2) Qualifying remote seller.--For purposes of this 
     subsection--
       (A) In general.--The term ``qualifying remote seller'' 
     means--
       (i) any remote seller that meets the ownership requirements 
     of subparagraph (B); or
       (ii) any remote seller the majority of domestic employees 
     of which are primarily employed at a location in a 
     participating State.
       (B) Ownership requirements.--A remote seller meets the 
     ownership requirements of this subparagraph if--
       (i) in the case of a remote seller that is a publicly 
     traded corporation, more than 50 percent of the covered 
     employees (as defined in section 162(m)(3)) of the Internal 
     Revenue Code of 1986) of such corporation reside in 
     participating States;
       (ii) in the case of a remote seller that is a corporation 
     (other than a publicly traded corporation), more than 50 
     percent of the stock (by vote or value) of such corporation 
     is held by individuals residing in participating States;
       (iii) in the case of a remote seller that is a partnership, 
     more than 50 percent of the profits interests or capital 
     interests in such partnership is held by individuals residing 
     in participating States; and
       (iv) in the case of any other remote seller, more than 50 
     percent of the beneficial interests in the entity is held by 
     individuals residing in participating States.
       (C) Attribution rules.--For purposes of subparagraph (B), 
     the rules of section 318(a) of the Internal Revenue Code of 
     1986 shall apply.
       (D) Aggregation rules.--For purposes of this paragraph, all 
     persons treated as a single employer under subsection (a) or 
     (b) of section 52 of the Internal Revenue Code of 1986 or 
     subsection (m) or (o) of section 414 of such Code shall be 
     treated as one person.
       (3) Participating state.--The term ``participating State'' 
     means--
       (A) a Member State under the Streamlined Sales and Use Tax 
     Agreement which has exercised authority under subsection (a); 
     or
       (B) a State that--
       (i) is not a Member State under the Streamlined Sales and 
     Use Tax Agreement;
       (ii) enacts legislation to exercise the authority to 
     require remote sales tax collection; and
       (iii) implements such other requirements as Congress shall 
     provide.
       (4) Streamlined sales and use tax agreement.--For purposes 
     of this subsection, the term ``Streamlined Sales and Use Tax 
     Agreement'' means the multi-State agreement with that title 
     adopted on November 12, 2002, as in effect on the date of the 
     enactment of this Act and as further amended from time to 
     time.
       (c) Waiver and Appeal.--
       (1) Waiver.--Subsection (a) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under subsection (a).
                                 ______
                                 
  SA 3071. Mrs. SHAHEEN submitted an amendment intended to be proposed 
by her to the bill H.R. 3474, to amend the Internal Revenue Code of 
1986 to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. SPECIAL CHANGE IN STATUS RULE FOR EMPLOYEES WHO 
                   BECOME ELIGIBLE FOR TRICARE.

       (a) In General.--Subsection (g) of section 125 is amended 
     by adding at the end the following new paragraph:
       ``(5) Change in status relating to tricare eligibility.--
     For purposes of this section, if a cafeteria plan permits an 
     employee to revoke an election during a period of coverage 
     and to make a new election based on a change in status event, 
     an event that causes the employee to become eligible for 
     coverage under the TRICARE program shall be treated as a 
     change in status event.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to events occurring after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 3072. Mr. ROBERTS (for himself, Mr. Enzi, Mr. Hatch, Mr. Burr, Mr. 
Flake, Mr. Isakson, Mr. Cornyn, Mr. Thune, Mr. Crapo, and Mr. Grassley) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. APPLICABLE STANDARD FOR DETERMINATIONS OF WHETHER 
                   AN ORGANIZATION IS OPERATED EXCLUSIVELY FOR THE 
                   PROMOTION OF SOCIAL WELFARE.

       (a) In General.--The standard and definitions as in effect 
     on January 1, 2010, which are used to determine whether an 
     organization is operated exclusively for the promotion of 
     social welfare for purposes of section 501(c)(4) of the 
     Internal Revenue Code of 1986 shall apply for purposes of 
     determining the status of organizations under section 
     501(c)(4) of the Internal Revenue Code of 1986 after the date 
     of the enactment of this Act.
       (b) Prohibition on Modification of Standard.--The Secretary 
     of the Treasury may not (nor may any delegate of such 
     Secretary) issue, revise, or finalize any regulation 
     (including the proposed regulations published at 78 Fed. Reg. 
     71535 (November 29, 2013)), revenue ruling, or other guidance 
     not limited to a particular taxpayer relating to the standard 
     and definitions specified in subsection (a).
       (c) Application to Organizations.--Except as provided in 
     subsection (d), this section shall apply with respect to any 
     organization claiming tax exempt status under section 
     501(c)(4) of the Internal Revenue Code of 1986 which was 
     created on, before, or after the date of the enactment of 
     this Act.
       (d) Sunset.--This section shall not apply after the one-
     year period beginning on the date of the enactment of this 
     Act.
                                 ______
                                 
  SA 3073. Mr. ROBERTS (for himself and Mr. Barrasso) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROTECTING PATIENTS FROM HIGHER PREMIUMS.

       Section 9010 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148), as amended by section 10905 of such 
     Act and by section 1406 of the Health Care and Education 
     Reconciliation Act of 2010 (Public Law 111-152), is repealed.
                                 ______
                                 
  SA 3074. Mr. ROBERTS (for himself, Mr. Flake, Mr. Isakson, Mr. Thune, 
Mr. Enzi, Mr. Cornyn, Mr. Hatch, Mr. Crapo, and Mr. Grassley) submitted 
an amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. PROHIBITION ON PERFORMANCE AWARDS TO IRS EMPLOYEES 
                   WHO OWE BACK TAXES.

       (a) In General.--The Commissioner of the Internal Revenue 
     Service shall not provide any performance award (including, 
     but not limited to, bonuses, step increases, and time off) to 
     an employee of the Internal Revenue Service who owes an 
     outstanding Federal tax debt.
       (b) Outstanding Federal Tax Debt.--For purposes of this 
     section, the term ``outstanding Federal tax debt'' means any 
     outstanding debt under the Internal Revenue Code of 1986 
     which has not been paid after an assessment of a tax, 
     penalty, or interest and

[[Page S3036]]

     which is not subject to further appeal or a petition for 
     redetermination under such Code. A debt shall not fail to be 
     treated as an outstanding Federal tax debt merely because it 
     is the subject of an installment agreement under section 6159 
     of such Code or an offer-in-compromise under section 7121 of 
     such Code.
                                 ______
                                 
  SA 3075. Ms. MURKOWSKI (for herself and Mr. Begich) submitted an 
amendment intended to be proposed by her to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                 TITLE _--EXTENSION OF OTHER PROVISIONS

     SEC. _01. EXTENSION OF CREDIT FOR THE PRODUCTION OF LOW 
                   SULFUR DIESEL FUEL.

       (a) In General.--Paragraph (4) of section 45H(c) is amended 
     by striking ``earlier of the date which is 1 year after the 
     date'' and inserting ``later of the date''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2009, in taxable years ending after such date.
                                 ______
                                 
  SA 3076. Mr. BARRASSO (for himself, Mr. Hatch, Mr. Roberts, Mr. Enzi, 
and Mr. Isakson) submitted an amendment intended to be proposed by him 
to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 to 
allow employers to exempt employees with health coverage under TRICARE 
or the Veterans Administration from being taken into account for 
purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. ____. PROTECTING PATIENTS FROM HIGHER PREMIUMS.

       (a) In General.--Subsection (a)(1) of section 9010 of the 
     Patient Protection and Affordable Care Act (Public Law 111-
     148), as amended by section 10905 of such Act and by section 
     1406 of the Health Care and Education Reconciliation Act of 
     2010 (Public Law 111-152), is amended by striking ``2013'' 
     and inserting ``2015''.
       (b) Conforming Amendments.--
       (1) Subsection (j) of section 9010 of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), as 
     amended by section 10905 of such Act and by section 1406 of 
     the Health Care and Education Reconciliation Act of 2010 
     (Public Law 111-152), is amended by striking ``2013'' and 
     inserting ``2015''.
       (2) Subsection (e) of section 9010 of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), as 
     amended by section 10905 of such Act and by section 1406 of 
     the Health Care and Education Reconciliation Act of 2010 
     (Public Law 111-152), is amended--
       (A) in paragraph (1)--
       (i) by striking ``2019'' in the heading and inserting 
     ``2021'',
       (ii) by striking ``2019'' and inserting ``2021'',
       (iii) by striking ``2018'' in the last line of the table 
     and inserting ``2020'',
       (iv) by striking ``2017'' in the 4th line of the table and 
     inserting ``2019'',
       (v) by striking ``2016'' in the 3rd line of the table and 
     inserting ``2018'',
       (vi) by striking ``2015'' in the 2nd line of the table and 
     inserting ``2017'', and
       (vii) by striking ``2014'' in the 1st line of the table and 
     inserting ``2016'', and
       (B) in paragraph (2)--
       (i) by striking ``2018'' in the heading and inserting 
     ``2020'', and
       (ii) by striking ``2018'' and inserting ``2020''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 9010 of the 
     Patient Protection and Affordable Care Act.
                                 ______
                                 
  SA 3077. Mr. THUNE (for himself, Mr. Roberts, Mr. Isakson, and Mr. 
Flake) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       Strike section 127 and insert the following:

     SEC. 127. PERMANENT EXTENSION OF EXPENSING CERTAIN 
                   DEPRECIABLE BUSINESS ASSETS FOR SMALL BUSINESS.

       (a) In General.--
       (1) Dollar limitation.--Paragraph (1) of section 179(b) is 
     amended by striking ``shall not exceed--'' and all that 
     follows and inserting ``shall not exceed $500,000.''.
       (2) Reduction in limitation.--Paragraph (2) of section 
     179(b) is amended by striking ``exceeds--'' and all that 
     follows and inserting ``exceeds $2,000,000.''.
       (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) 
     is amended by striking ``, to which section 167 applies, and 
     which is placed in service in a taxable year beginning after 
     2002 and before 2014'' and inserting ``and to which section 
     167 applies''.
       (c) Election.--Paragraph (2) of section 179(c) is amended--
       (1) by striking ``may not be revoked'' and all that follows 
     through ``and before 2014'', and
       (2) by striking ``irrevocable'' in the heading thereof.
       (d) Air Conditioning and Heating Units.--Paragraph (1) of 
     section 179(d) is amended by striking ``and shall not include 
     air conditioning or heating units''.
       (e) Qualified Real Property.--Subsection (f) of section 179 
     is amended--
       (1) by striking ``beginning in 2010, 2011, 2012, or 2013'' 
     in paragraph (1), and
       (2) by striking paragraphs (3) and (4).
       (f) Inflation Adjustment.--Subsection (b) of section 179 is 
     amended by adding at the end the following new paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2014, the dollar amounts in paragraphs (1) 
     and (2) shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(c)(2)(A) for such calendar year, determined by 
     substituting calendar year 2013 for calendar year 2012 in 
     clause (ii) thereof.
       ``(B) Rounding.--The amount of any increase under 
     subparagraph (A) shall be rounded to the nearest multiple of 
     $10,000.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3078. Mr. THUNE (for himself, Mr. Cornyn, Mr. Roberts, and Mr. 
Isakson) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       Strike section 111 and insert the following:

     SEC. 111. RESEARCH CREDIT SIMPLIFIED AND MADE PERMANENT.

       (a) In General.--Subsection (a) of section 41 is amended to 
     read as follows:
       ``(a) In General.--For purposes of section 38, the research 
     credit determined under this section for the taxable year 
     shall be an amount equal to the sum of--
       ``(1) 20 percent of so much of the qualified research 
     expenses for the taxable year as exceeds 50 percent of the 
     average qualified research expenses for the 3 taxable years 
     preceding the taxable year for which the credit is being 
     determined,
       ``(2) 20 percent of so much of the basic research payments 
     for the taxable year as exceeds 50 percent of the average 
     basic research payments for the 3 taxable years preceding the 
     taxable year for which the credit is being determined, plus
       ``(3) 20 percent of the amounts paid or incurred by the 
     taxpayer in carrying on any trade or business of the taxpayer 
     during the taxable year (including as contributions) to an 
     energy research consortium for energy research.''.
       (b) Repeal of Termination.--Section 41 is amended by 
     striking subsection (h).
       (c) Conforming Amendments.--
       (1) Subsection (c) of section 41 is amended to read as 
     follows:
       ``(c) Determination of Average Research Expenses for Prior 
     Years.--
       ``(1) Special rule in case of no qualified research 
     expenditures in any of 3 preceding taxable years.--In any 
     case in which the taxpayer has no qualified research expenses 
     in any one of the 3 taxable years preceding the taxable year 
     for which the credit is being determined, the amount 
     determined under subsection (a)(1) for such taxable year 
     shall be equal to 10 percent of the qualified research 
     expenses for the taxable year.
       ``(2) Consistent treatment of expenses.--
       ``(A) In general.--Notwithstanding whether the period for 
     filing a claim for credit or refund has expired for any 
     taxable year taken into account in determining the average 
     qualified research expenses, or average basic research 
     payments, taken into account under subsection (a), the 
     qualified research expenses and basic research payments taken 
     into account in determining such averages shall be determined 
     on a basis consistent with the determination of qualified 
     research expenses and basic research payments, respectively, 
     for the credit year.
       ``(B) Prevention of distortions.--The Secretary may 
     prescribe regulations to prevent distortions in calculating a 
     taxpayer's qualified research expenses or basic research 
     payments caused by a change in accounting methods used by 
     such taxpayer between the current year and a year taken into 
     account in determining the average qualified research 
     expenses or average basic research payments taken into 
     account under subsection (a).''.
       (2) Section 41(e) is amended--
       (A) by striking all that precedes paragraph (6) and 
     inserting the following:

[[Page S3037]]

       ``(e) Basic Research Payments.--For purposes of this 
     section--
       ``(1) In general.--The term `basic research payment' means, 
     with respect to any taxable year, any amount paid in cash 
     during such taxable year by a corporation to any qualified 
     organization for basic research but only if--
       ``(A) such payment is pursuant to a written agreement 
     between such corporation and such qualified organization, and
       ``(B) such basic research is to be performed by such 
     qualified organization.
       ``(2) Exception to requirement that research be performed 
     by the organization.--In the case of a qualified organization 
     described in subparagraph (C) or (D) of paragraph (3), 
     subparagraph (B) of paragraph (1) shall not apply.'',
       (B) by redesignating paragraphs (6) and (7) as paragraphs 
     (3) and (4), respectively, and
       (C) in paragraph (4) as so redesignated, by striking 
     subparagraphs (B) and (C) and by redesignating subparagraphs 
     (D) and (E) as subparagraphs (B) and (C), respectively.
       (3) Section 41(f)(3)is amended--
       (A)(i) by striking ``, and the gross receipts'' in 
     subparagraph (A)(i) and all that follows through ``determined 
     under clause (iii)'',
       (ii) by striking clause (iii) of subparagraph (A) and 
     redesignating clauses (iv), (v), and (vi), thereof, as 
     clauses (iii), (iv), and (v), respectively,
       (iii) by striking ``and (iv)'' each place it appears in 
     subparagraph (A)(iv) (as so redesignated) and inserting ``and 
     (iii)'',
       (iv) by striking subclause (IV) of subparagraph (A)(iv) (as 
     so redesignated), by striking ``, and'' at the end of 
     subparagraph (A)(iv)(III) (as so redesignated) and inserting 
     a period, and by adding ``and'' at the end of subparagraph 
     (A)(iv)(II) (as so redesignated),
       (v) by striking ``(A)(vi)'' in subparagraph (B) and 
     inserting ``(A)(v)'', and
       (vi) by striking ``(A)(iv)(II)'' in subparagraph (B)(i)(II) 
     and inserting ``(A)(iii)(II)'',
       (B) by striking ``, and the gross receipts of the 
     predecessor,'' in subparagraph (A)(iv)(II) (as so 
     redesignated),
       (C) by striking ``, and the gross receipts of,'' in 
     subparagraph (B),
       (D) by striking ``, or gross receipts of,'' in subparagraph 
     (B)(i)(I), and
       (E) by striking subparagraph (C).
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2013.
       (2) Subsection (b).--The amendment made by subsection (b) 
     shall apply to amounts paid or incurred after December 31, 
     2013.
                                 ______
                                 
  SA 3079. Mr. THUNE (for himself, Mr. Cardin, and Mr. Roberts) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       Strike sections 137 and 138 and insert the following:

     SEC. 137. PERMANENT RULE REGARDING BASIS ADJUSTMENT TO STOCK 
                   OF S CORPORATIONS MAKING CHARITABLE 
                   CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Section 1367(a)(2) is amended by striking 
     the last sentence.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2013.

     SEC. 138. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S 
                   CORPORATIONS MADE PERMANENT.

       (a) In General.--Paragraph (7) of section 1374(d) is 
     amended to read as follows:
       ``(7) Recognition period.--
       ``(A) In general.--The term recognition period means the 5-
     year period beginning with the 1st day of the 1st taxable 
     year for which the corporation was an S corporation. For 
     purposes of applying this section to any amount includible in 
     income by reason of distributions to shareholders pursuant to 
     section 593(e), the preceding sentence shall be applied 
     without regard to the phrase 5-year.
       ``(B) Installment sales.--If an S corporation sells an 
     asset and reports the income from the sale using the 
     installment method under section 453, the treatment of all 
     payments received shall be governed by the provisions of this 
     paragraph applicable to the taxable year in which such sale 
     was made.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3080. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       Strike section 106 and insert the following:

     SEC. 106. PERMANENT EXTENSION OF DEDUCTION OF STATE AND LOCAL 
                   GENERAL SALES TAXES.

       (a) In General.--Section 164(b)(5) is amended by striking 
     subparagraph (I).
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3081. Mr. COONS (for himself, Mr. Moran, Ms. Stabenow, and Ms. 
Murkowski) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

                  TITLE _--MASTER LIMITED PARTNERSHIPS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Master Limited 
     Partnerships Parity Act''.

     SEC. _02. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP 
                   STRUCTURE TO ENERGY POWER GENERATION PROJECTS, 
                   TRANSPORTATION FUELS, AND RELATED ENERGY 
                   ACTIVITIES.

       (a) In General.--Subparagraph (E) of section 7704(d)(1) is 
     amended--
       (1) by striking ``income and gains derived from the 
     exploration'' and inserting ``income and gains derived from 
     the following:
       ``(i) Minerals, natural resources, etc.--The exploration'',
       (2) by inserting ``or'' before ``industrial source'',
       (3) by inserting a period after ``carbon dioxide'', and
       (4) by striking ``, or the transportation or storage'' and 
     all that follows and inserting the following:
       ``(ii) Renewable energy.--The generation of electric power 
     exclusively utilizing any resource described in section 
     45(c)(1) or energy property described in section 48 
     (determined without regard to any termination date), or in 
     the case of a facility described in paragraph (3) or (7) of 
     section 45(d) (determined without regard to any placed in 
     service date or date by which construction of the facility is 
     required to begin), the accepting or processing of such 
     resource.
       ``(iii) Electricity storage devices.--The receipt and sale 
     of electric power that has been stored in a device directly 
     connected to the grid.
       ``(iv) Combined heat and power.--The generation, storage, 
     or distribution of thermal energy exclusively utilizing 
     property described in section 48(c)(3) (determined without 
     regard to subparagraphs (B) and (D) thereof and without 
     regard to any placed in service date).
       ``(v) Renewable thermal energy.--The generation, storage, 
     or distribution of thermal energy exclusively using any 
     resource described in section 45(c)(1) or energy property 
     described in clause (i) or (iii) of section 48(a)(3)(A).
       ``(vi) Waste heat to power.--The use of recoverable waste 
     energy, as defined in section 371(5) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6341(5)) (as in effect on the 
     date of the enactment of the Master Limited Partnerships 
     Parity Act).
       ``(vii) Renewable fuel infrastructure.--The storage or 
     transportation of any fuel described in subsection (b), (c), 
     (d), or (e) of section 6426.
       ``(viii) Renewable fuels.--The production, storage, or 
     transportation of any renewable fuel described in section 
     211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J)) 
     (as in effect on the date of the enactment of the Master 
     Limited Partnerships Parity Act) or section 40A(d)(1).
       ``(ix) Renewable chemicals.--The production, storage, or 
     transportation of any renewable chemical (as defined in 
     paragraph (6)).
       ``(x) Energy efficient buildings.--The audit and 
     installation through contract or other agreement of any 
     energy efficient building property described in section 
     179D(c)(1).
       ``(xi) Gasification with sequestration.--The production of 
     any product from a project that meets the requirements of 
     subparagraphs (A) and (B) of section 48B(c)(1) and that 
     separates and sequesters in secure geological storage (as 
     determined under section 45Q(d)(2)) at least 75 percent of 
     such project's total qualified carbon dioxide (as defined in 
     section 45Q(b)).
       ``(xii) Carbon capture and sequestration.--The generation 
     or storage of electric power produced from any facility which 
     is a qualified facility described in section 45Q(c) and which 
     disposes of any captured qualified carbon dioxide (as defined 
     in section 45Q(b)) in secure geological storage (as 
     determined under section 45Q(d)(2)).''.
       (b) Renewable Chemical.--Section 7704(d) is amended by 
     adding at the end the following new paragraph:
       ``(6) Renewable chemical.--The term `renewable chemical' 
     means a monomer, polymer, plastic, formulated product, or 
     chemical substance produced from renewable biomass (as 
     defined in section 9001(12) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8101(12)), as in effect on 
     the

[[Page S3038]]

     date of the enactment of the Master Limited Partnerships 
     Parity Act).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act, 
     in taxable years ending after such date.
                                 ______
                                 
  SA 3082. Mr. KING submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REQUIREMENTS WITH RESPECT TO MEDICAL DEVICE PRICING.

       (a) Prohibition on Confidentiality Clauses With Respect to 
     Pricing.--A medical device manufacturer may not require 
     hospitals or other buyers to sign purchasing agreements that 
     contain confidentiality clauses restricting such hospitals or 
     buyers from revealing to third parties the prices paid for 
     medical devices.
       (b) Reporting on Sales Prices.--The Secretary of Health and 
     Human Services shall require medical device manufacturers to 
     submit to such Secretary a quarterly report on the average 
     and median sales prices of covered devices, as defined in 
     section 1128G(e) of the Social Security Act.
                                 ______
                                 
  SA 3083. Mr. BOOKER (for himself and Mr. Scott) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

  TITLE _--LEVERAGING AND ENERGIZING AMERICA'S APPRENTICESHIP PROGRAMS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Leveraging and Energizing 
     America's Apprenticeship Programs Act'' or the ``LEAP Act''.

     SEC. _02. CREDIT FOR EMPLOYEES PARTICIPATING IN QUALIFIED 
                   APPRENTICESHIP PROGRAMS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 is amended by adding at the end the following new 
     section:

     ``SEC. 45S. EMPLOYEES PARTICIPATING IN QUALIFIED 
                   APPRENTICESHIP PROGRAMS.

       ``(a) In General.--For purposes of section 38, the 
     apprenticeship credit determined under this section for the 
     taxable year is an amount equal to the sum of the applicable 
     credit amounts (as determined under subsection (b)) for each 
     of apprentice of the employer that exceeds the applicable 
     apprenticeship level (as determined under subsection (e)) 
     during such taxable year.
       ``(b) Applicable Credit Amount.--For purposes of subsection 
     (a), the applicable credit amount for each apprentice for 
     each taxable year is equal to--
       ``(1) in the case of an apprentice who has not attained 25 
     years of age at the close of the taxable year, $1,500, or
       ``(2) in the case of an apprentice who has attained 25 
     years of age at the close of the taxable year, $1,000.
       ``(c) Limitation on Number of Years Which Credit May Be 
     Taken Into Account.--The apprenticeship credit shall not be 
     allowed for more than 2 taxable years with respect to any 
     apprentice.
       ``(d) Apprentice.--For purposes of this section, the term 
     `apprentice' means any employee who is employed by the 
     employer--
       ``(1) in an officially recognized apprenticeable 
     occupation, as determined by the Office of Apprenticeship of 
     the Employment and Training Administration of the Department 
     of Labor, and
       ``(2) pursuant to an apprentice agreement registered with--
       ``(A) the Office of Apprenticeship of the Employment and 
     Training Administration of the Department of Labor, or
       ``(B) a recognized State apprenticeship agency, as 
     determined by the Office of Apprenticeship of the Employment 
     and Training Administration of the Department of Labor.
       ``(e) Applicable Apprenticeship Level.--
       ``(1) In general.--For purposes this section, the 
     applicable apprenticeship level shall be equal to--
       ``(A) in the case of any apprentice described in subsection 
     (b)(1), the amount equal to 80 percent of the average number 
     of such apprentices of the employer for the 3 taxable years 
     preceding the taxable year for which the credit is being 
     determined, rounded to the next lower whole number; and
       ``(B) in the case of any apprentices described in 
     subsection (b)(2), the amount equal to 80 percent of the 
     average number of such apprentices of the employer for the 3 
     taxable years preceding the taxable year for which the credit 
     is being determined, rounded to the next lower whole number.
       ``(2) First year of new apprenticeship programs.--In the 
     case of an employer which did not have any apprentices during 
     any taxable year in the 3 taxable years preceding the taxable 
     year for which the credit is being determined, the applicable 
     apprenticeship level shall be equal to zero.
       ``(f) Coordination With Other Credits.--The amount of 
     credit otherwise allowable under sections 45A, 51(a), and 
     1396(a) with respect to any employee shall be reduced by the 
     credit allowed by this section with respect to such employee.
       ``(g) Certain Rules To Apply.--Rules similar to the rules 
     of subsections (i)(1) and (k) of section 51 shall apply for 
     purposes of this section.''.
       (b) Credit Made Part of General Business Credit.--
     Subsection (b) of section 38, as amended by this Act, is 
     amended by striking ``plus'' at the end of paragraph (36), by 
     striking the period at the end of paragraph (37) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(38) the apprenticeship credit determined under section 
     45S(a).''.
       (c) Denial of Double Benefit.--Subsection (a) of section 
     280C is amended by inserting ``45S(a),'' after ``45P(a),''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45S. Employees participating in qualified apprenticeship 
              programs.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to individuals commencing apprenticeship programs 
     after the date of the enactment of this Act.

     SEC. 3. LIMITATION ON GOVERNMENT PRINTING COSTS.

       Not later than 90 days after the date of enactment of this 
     Act, the Director of the Office of Management and Budget 
     shall coordinate with the heads of Federal departments and 
     independent agencies to--
       (1) determine which Government publications could be 
     available on Government websites and no longer printed and to 
     devise a strategy to reduce overall Government printing costs 
     over the 10-year period beginning with fiscal year 2015, 
     except that the Director shall ensure that essential printed 
     documents prepared for social security recipients, medicare 
     beneficiaries, and other populations in areas with limited 
     Internet access or use continue to remain available;
       (2) establish government wide Federal guidelines on 
     employee printing; and
       (3) issue guidelines requiring every department, agency, 
     commission, or office to list at a prominent place near the 
     beginning of each publication distributed to the public and 
     issued or paid for by the Federal Government--
       (A) the name of the issuing agency, department, commission, 
     or office;
       (B) the total number of copies of the document printed;
       (C) the collective cost of producing and printing all of 
     the copies of the document; and
       (D) the name of the entity publishing the document.
                                 ______
                                 
  SA 3084. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                       TITLE __--OTHER PROVISIONS

     SEC. _01. PROHIBITION ON USE OF WAIVER THREATENING BALD 
                   EAGLES.

       (a) In General.--Subsection (e) of section 45 is amended by 
     adding at the end the following new paragraph:
       ``(12) Protection of bald eagles.--
       ``(A) In general.--Sales shall be taken into account under 
     this section only with respect to electricity produced by a 
     taxpayer who does not have in effect a waiver granted by the 
     Federal government or any agency or instrumentality thereof 
     from any Federal law or provision thereof protecting the 
     life, well-being, or habitat of the bald eagle.
       ``(B) Recapture of benefit.--In the case of any taxpayer--
       ``(i) who has in effect a waiver described in subparagraph 
     (A) as of the date of the enactment of this paragraph, and
       ``(ii) who has claimed the credit under section 38 by 
     reason of this section for any preceding taxable year,

     the tax imposed under subtitle A on the taxpayer for the 
     taxable year that includes such date of enactment shall be 
     increased by so much of such credit as was allowed under 
     section 38, and the general business carryforwards under 
     section 39 shall be adjusted so as to recapture the portion 
     of such credit which is equal to such amount.
       ``(C) Renunciation of waiver.--Any taxpayer to whom 
     subparagraph (B) would otherwise apply (but for the second 
     sentence of this subparagraph) may elect to renounce in 
     writing the waiver described in subparagraph (A). If such 
     renunciation is made to the Secretary and to the appropriate 
     Federal officer of the agency that issued such waiver not 
     later than 12 months after the date of the enactment of this 
     paragraph, such taxpayer

[[Page S3039]]

     shall be exempt from the increase in tax under subparagraph 
     (B).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 3085. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       On page 23, strike line 5 and all that follows through line 
     21 and insert the following:
       (a) Permanent Extension.--Section 45P is amended by 
     striking subsection (f).
       (b) Expansion of Credit.--
       (1) Expansion to 100 percent of eligible differential wage 
     payments.--Subsection (a) of section 45P is amended by 
     striking ``20 percent of''.
       (2) Adjustment for inflation.--Subsection (b) of section 
     45P is amended by adding at the end the following new 
     paragraph:
       ``(4) Adjustment for inflation.--In the case of any taxable 
     year beginning after 2014, the $20,000 amount in paragraph 
     (1) shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2013' for 
     `calendar year 1992' in subparagraph (B) thereof.

     If the amount as increased under the preceding sentence is 
     not a multiple of $100, such amount shall be rounded to the 
     nearest multiple of $100.''.
       (3) Applicability to all employers.--
       (A) In general.--Subsection (a) of section 45P, as amended 
     by paragraph (1), is amended by striking ``eligible small 
     business employer'' and inserting ``eligible employer''.
       (B) Conforming amendments.--Paragraph (3) of section 45P(b) 
     is amended--
       (i) in subparagraph (A)--

       (I) by striking ``eligible small business employer'' and 
     inserting ``eligible employer'', and
       (II) by striking ``any employer which'' and all that 
     follows and inserting ``any employer which, under a written 
     plan of the employer, provides eligible differential wage 
     payments to every qualified employee of the employer.'', and

       (ii) by striking ``Eligible small business employer'' in 
     the heading and inserting ``Eligible employer''.
                                 ______
                                 
  SA 3086. Mr. HATCH (for himself, Mr. Alexander, Mr. Coats, and Mr. 
Thune) submitted an amendment intended to be proposed by him to the 
bill H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; which was ordered to lie on the table; as follows:

       At the end, add the following:

               TITLE _--ELIMINATION OF INDIVIDUAL MANDATE

     SEC. _01. RESTORING INDIVIDUAL LIBERTY.

       Sections 1501 and 1502 and subsections (a), (b), (c), and 
     (d) of section 10106 of the Patient Protection and Affordable 
     Care Act (and the amendments made by such sections and 
     subsections) are repealed and the Internal Revenue Code of 
     1986 shall be applied and administered as if such provisions 
     and amendments had never been enacted.
                                 ______
                                 
  SA 3087. Mr. HATCH (for himself, Mr. Alexander, and Mr. Thune) 
submitted an amendment intended to be proposed by him to the bill H.R. 
3474, to amend the Internal Revenue Code of 1986 to allow employers to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                  TITLE _--REPEAL OF EMPLOYER MANDATE

     SEC. __. PROTECT JOB CREATION.

       Sections 1513 and 1514 and subsections (e), (f), and (g) of 
     section 10106 of the Patient Protection and Affordable Care 
     Act (and the amendments made by such sections and 
     subsections) are repealed and the Internal Revenue Code of 
     1986 shall be applied and administered as if such provisions 
     and amendments had never been enacted.
                                 ______
                                 
  SA 3088. Mr. BURR (for himself and Mr. Manchin) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

                       TITLE V--OTHER PROVISIONS

     SEC. 501. RESTRICTION ON DISCRETIONARY BONUSES FOR EMPLOYEES 
                   OF THE INTERNAL REVENUE SERVICE.

       (a) In General.--The Secretary of the Treasury (or the 
     Secretary's delegate) shall not provide any discretionary 
     performance award to any employee of the Internal Revenue 
     Service with respect to whom there is substantial evidence of 
     misconduct or seriously delinquent tax debt.
       (b) Coordination With Collective Bargaining Agreements.--
     For the purpose of any collective bargaining agreement with 
     the Internal Revenue Service, the Secretary of the Treasury 
     (or the Secretary's delegate) shall consider the denial or 
     withholding of a discretionary performance award for any 
     employee with respect to whom there is substantial evidence 
     of misconduct described in subsection (c)(1) or seriously 
     delinquent tax debt as an action necessary to protect the 
     integrity of the Internal Revenue Service.
       (c) Terms.--For purposes of this section--
       (1) Misconduct.--The term ``misconduct'' includes--
       (A) any misuse of, or delinquency with respect to, a travel 
     charge card obtained through the Federal Government;
       (B) any violation of section 1203(b) of the Internal 
     Revenue Service Restructuring and Reform Act of 1998;
       (C) any offense consisting of the possession or use of a 
     controlled substance;
       (D) violent threats;
       (E) fraudulent behavior, including fraudulently claiming 
     unemployment benefits and fraudulently entering attendance 
     and leave on time sheets; and
       (F) any other behavior determined by the Secretary (or the 
     Secretary's delegate) under regulations.
       (2) Seriously delinquent tax debt.--The term ``seriously 
     delinquent tax debt'' means an outstanding debt under the 
     Internal Revenue Code of 1986 for which a notice of lien has 
     been filed in public records pursuant to section 6323 of such 
     Code, except that such term does not include--
       (A) a debt that is being paid in a timely manner pursuant 
     to an agreement under section 6159 or section 7122 of such 
     Code; and
       (B) a debt with respect to which a collection due process 
     hearing under section 6330 of such Code, or relief under 
     subsection (a), (b), or (f) of section 6015 of such Code, is 
     requested or pending.
       (3) Discretionary performance awards.--The term 
     ``discretionary performance award'' includes--
       (A) any performance award based on an employee's 
     performance as reflected in the most recent rating of record;
       (B) any special act and manager award, or any similar award 
     based on individual or group achievements;
       (C) any suggestion awards based on the adoption of employee 
     suggestions; and
       (D) any quality step increase or within grade pay increase 
     based on performance ratings.
                                 ______
                                 
  SA 3089. Mr. REID proposed an amendment to amendment SA 3060 proposed 
by Mr. Wyden to the bill H.R. 3474, to amend the Internal Revenue Code 
of 1986 to allow employers to exempt employees with health coverage 
under TRICARE or the Veterans Administration from being taken into 
account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; as follows:

       At the end, add the following:
       This Act shall become effective 1 day after enactment.
                                 ______
                                 
  SA 3090. Mr. REID proposed an amendment to amendment SA 3089 proposed 
by Mr. Reid to the amendment SA 3060 proposed by Mr. Wyden to the bill 
H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; as follows:

       In the amendment, strike ``1 day'' and insert ``2 days''.
                                 ______
                                 
  SA 3091. Mr. REID proposed an amendment to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
as follows:

       At the end, add the following:
       This Act shall become effective 3 days after enactment.
                                 ______
                                 
  SA 3092. Mr. REID proposed an amendment to amendment SA 3091 proposed 
by Mr. Reid to the bill H.R. 3474,

[[Page S3040]]

to amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
as follows:

       In the amendment, strike ``3 days'' and insert ``4 days''.
                                 ______
                                 
  SA 3093. Mr. REID proposed an amendment to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
as follows:

       At the end, add the following:
       This Act shall become effective 5 days after enactment.
                                 ______
                                 
  SA 3094. Mr. REID proposed an amendment to amendment SA 3093 proposed 
by Mr. Reid to the bill H.R. 3474, to amend the Internal Revenue Code 
of 1986 to allow employers to exempt employees with health coverage 
under TRICARE or the Veterans Administration from being taken into 
account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; as follows:

       In the amendment, strike ``5 days''and insert ``6 days''.
                                 ______
                                 
  SA 3095. Mr. REID proposed an amendment to amendment SA 3094 proposed 
by Mr. Reid to the amendment SA 3093 proposed by Mr. Reid to the bill 
H.R. 3474, to amend the Internal Revenue Code of 1986 to allow 
employers to exempt employees with health coverage under TRICARE or the 
Veterans Administration from being taken into account for purposes of 
the employer mandate under the Patient Protection and Affordable Care 
Act; as follows:

       In the amendment, strike ``6'' and insert ``7''.
                                 ______
                                 
  SA 3096. Mr. REID (for Mr. Coons) proposed an amendment to the 
resolution S. Res. 314, commemorating and supporting the goals of World 
AIDS Day; as follows:

       On page 5, beginning on line 6, strike ``, as well as'' and 
     all that follows through ``AIDS'' on line 8.
                                 ______
                                 
  SA 3097. Mr. REID (for Mr. Coons) proposed an amendment to the 
resolution S. Res. 314, commemorating and supporting the goals of World 
AIDS Day; as follows:

       Strike the second through fourth whereas clauses of the 
     preamble and insert the following:
       Whereas the 2001 United Nations Declaration of Commitment 
     on HIV/AIDS Global mobilized global attention and commitment 
     to the HIV/AIDS epidemic and set out a series of national 
     targets and global actions to reverse the epidemic;
       Whereas the 2011 United Nations General Assembly High Level 
     Meeting on AIDS addressed the progress of intensified efforts 
     to eliminate HIV and AIDS, including redoubling efforts to 
     achieve by 2015 universal access to HIV prevention, 
     treatment, care, and support, and to eliminate gender 
     inequalities and gender-based abuse and violence and increase 
     the capacity of women and adolescent girls to protect 
     themselves from the risk of HIV infection;
                                 ______
                                 
  SA 3098. Ms. CANTWELL (for herself, Mr. Thune, Mr. Cornyn, Mr. 
Nelson, Mrs. Murray, and Mr. Enzi) submitted an amendment intended to 
be proposed by her to the bill H.R. 3474, to amend the Internal Revenue 
Code of 1986 to allow employers to exempt employees with health 
coverage under TRICARE or the Veterans Administration from being taken 
into account for purposes of the employer mandate under the Patient 
Protection and Affordable Care Act; which was ordered to lie on the 
table; as follows:

       Beginning on page 8, strike line 19 and all that follows 
     through page 9, line 3 and insert the following:

     SEC. 106. PERMANENT EXTENSION OF DEDUCTION FOR STATE AND 
                   LOCAL GENERAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``, and before January 1, 2014''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 3099. Mrs. HAGAN submitted an amendment intended to be proposed by 
her to the bill H.R. 3474, to amend the Internal Revenue Code of 1986 
to allow employers to exempt employees with health coverage under 
TRICARE or the Veterans Administration from being taken into account 
for purposes of the employer mandate under the Patient Protection and 
Affordable Care Act; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EXTENSION OF DUTY-FREE TREATMENT FOR CERTAIN 
                   TROUSERS, BREECHES, OR SHORTS IMPORTED FROM 
                   NICARAGUA.

       (a) Duty-Free Treatment.--Notwithstanding the termination 
     of the tariff preference level program for imports of apparel 
     articles from Nicaragua and subject to subsection (b), 
     eligible apparel articles shall enter the United States free 
     of duty if such eligible apparel articles are accompanied by 
     an earned import allowance certificate for the amount of 
     credits equal to the total square meter equivalents of fabric 
     in such eligible apparel articles, in accordance with the 
     program established under subsection (c).
       (b) Quantitative Limitation.--
       (1) Initial limitation.--Subject to paragraphs (2) and (3), 
     duty-free treatment under this section shall be extended for 
     a covered calendar year to an initial limit of not more than 
     50,000,000 square meter equivalents of eligible apparel 
     articles unless that amount is increased pursuant to 
     paragraph (3) for such year.
       (2) Export success factor.--If during a covered calendar 
     year the Secretary of Commerce determines that duty-free 
     treatment under this section has been extended to 90 percent 
     or more of the initial limit for such year prior to the end 
     of such year, the Commissioner shall--
       (A) extend such treatment to an additional amount of square 
     meter equivalents of eligible apparel articles that is equal 
     to 10 percent of the initial limit for such year; and
       (B) publish notice of the extension in the Federal 
     Register.
       (3) Export success pattern.--
       (A) Three year increase.--Subject to subparagraph (B), if 
     the Commissioner takes the action described in paragraph (2) 
     for a period of 3 consecutive covered calendar years, for 
     subsequent covered calendar years the Commissioner shall--
       (i) increase the initial limit for subsequent covered 
     calendar years by an additional amount of square meter 
     equivalents of eligible apparel articles that is equal to 10 
     percent of the initial limit for each covered calendar year 
     of the previous 3-year period; and
       (ii) publish notice of such increase in the Federal 
     Register.
       (B) Additional increases.--If the initial limit is 
     increased under subparagraph (A) for a period of 3 
     consecutive covered calendar years, the initial limit for 
     each such year--
       (i) shall be increased under paragraph (2), if the 
     requirements of such paragraph are met for such year; and
       (ii) may be eligible for an additional increase under 
     subparagraph (A) no more frequently than once every 3 years.
       (c) Earned Import Allowance Program.--
       (1) Matching requirement.--The aggregate square meter 
     equivalents of eligible apparel articles of each producer or 
     entity controlling production that may receive duty-free 
     treatment under this section during a covered calendar year 
     may not exceed the aggregate square meter equivalents of 
     fabric wholly formed in the United States of yarns wholly 
     formed in the United States that was previously exported from 
     the United States by such producer or entity and for which 
     the producer or entity has available credits in its account 
     established under paragraph (3)(B).
       (2) Requirement for program.--The Secretary of Commerce 
     shall establish a program to provide earned import allowance 
     certificates to any producer or entity controlling production 
     of eligible apparel articles for purposes of subsection (a), 
     based on the elements described in paragraph (3).
       (3) Elements.--The elements described in this paragraph are 
     the following:
       (A) Credits.--One credit shall be issued to a producer or 
     an entity controlling production for every one square meter 
     equivalent of fabric wholly formed in the United States from 
     yarns wholly formed in the United States that such producer 
     or entity demonstrates has been exported from the customs 
     territory of the United States.
       (B) Accounts.--If requested by a producer or entity 
     controlling production, the Secretary of Commerce shall 
     create and maintain an account for such producer or entity 
     into which credits issued under subparagraph (A) may be 
     deposited.
       (C) Certificates.--A producer or entity controlling 
     production may redeem credits issued under subparagraph (A) 
     for earned import allowance certificates for such number of 
     credits such producer or entity may request and has 
     available, subject to the calendar year limits under 
     subsection (b).
       (D) Documentation.--The Secretary of Commerce may require 
     that a producer or entity controlling production submit 
     documentation to verify the export of fabric wholly formed in 
     the United States of yarns wholly formed in the United 
     States.
       (E) Verification.--The Secretary of Commerce may reconcile 
     discrepancies in the information provided under subparagraph 
     (D) and verify the accuracy of such information.
       (F) Electronic information.--The program shall be 
     established so as to allow, to

[[Page S3041]]

     the extent feasible, the submission, storage, retrieval, and 
     disclosure of information in electronic format, including 
     information with respect to the earned import allowance 
     certificates.
       (G) Schedule.--The Secretary of Commerce shall establish 
     procedures to carry out the program under this subsection by 
     the date that is 90 days after the date of the enactment of 
     this Act, and may establish additional requirements to carry 
     out the program.
       (H) Penalties.--If an importer, producer, or entity 
     controlling production enters into the customs territory of 
     the United States eligible apparel articles for which there 
     are insufficient earned credits, the Commissioner may impose 
     on such importer, producer, or entity a penalty equal to the 
     value of such eligible apparel articles, in addition to 
     existing penalties under section 592 of the Tariff Act of 
     1930 (19 U.S.C. 1592), as appropriate.
       (4) Determination of quantity of sme.--For purposes of 
     determining the quantity of ``square meter equivalents'' 
     under this section, the conversion factors listed in 
     Correlation: U.S. Textile and Apparel Category System with 
     the Harmonized Tariff Schedule of the United States of 
     America, 2013, or successor publication of the Office of 
     Textiles and Apparel of the Department of Commerce, shall 
     apply.
       (d) Definitions.--In this section:
       (1) Commissioner.--The term ``Commissioner'' means the 
     Commissioner responsible for U.S. Customs and Border 
     Protection.
       (2) Covered calendar year.--The term ``covered calendar 
     year'' means a calendar year during the 10-year period 
     referred to in subsection (e).
       (3) Eligible apparel article.--The term ``eligible apparel 
     article'' means woven trousers, breeches, or shorts that are 
     apparel articles described in subdivisions (a) and (b) of 
     U.S. Note 15 to subchapter XV of chapter 99 of the HTS 
     imported from Nicaragua.
       (4) Enter; entry.--The terms ``enter'' and ``entry'' 
     include a withdrawal from warehouse for consumption.
       (5) Entity controlling production.--The term ``entity 
     controlling production'' means a person or other entity or 
     group that is not a producer and that controls the production 
     process in Nicaragua through a contractual relationship or 
     other indirect means.
       (6) Fabric wholly formed in the united states of yarn 
     wholly formed in the united states.--
       (A) In general.--The term ``fabric wholly formed in the 
     United States of yarn wholly formed in the United States'' 
     means fabric--
       (i) woven in the United States from fibers or from yarns, 
     the constituent staple fibers of which are spun in the United 
     States or the continuous filament of which is extruded in the 
     United States;
       (ii) for which any dyeing, printing, or finishing is 
     performed in the United States; and
       (iii) exported to Nicaragua on or after April 1, 2014.
       (B) De minimis exception.--Fabric that contains yarns not 
     wholly formed in the United States shall be considered 
     ``fabric wholly formed in the United States of yarn wholly 
     formed in the United States'' if the total weight of all 
     yarns not wholly formed in the United States is not more than 
     10 percent of the total weight of the fabric, except that any 
     elastomeric yarn contained in the fabric must be wholly 
     formed in the United States.
       (7) HTS.--The term ``HTS'' means the Harmonized Tariff 
     Schedule of the United States as in effect on the day before 
     the date of the enactment of this Act.
       (8) Initial limit.--The term ``initial limit'' means the 
     quantity of square meter equivalents of eligible apparel 
     articles that may be extended duty-free treatment under this 
     section on the first day of a calendar year.
       (9) Producer.--The term ``producer'' means a person or 
     other entity or group that exercises direct, daily 
     operational control over the production process in Nicaragua.
       (10) Tariff preference level program for imports of apparel 
     articles from nicaragua.--The term ``tariff preference level 
     program for imports of apparel articles from Nicaragua'' 
     refers to the preferential tariff treatment for 
     nonoriginating apparel goods of Nicaragua established 
     pursuant to Article 3.28 of the Dominican Republic-Central 
     America-United States Free Trade Agreement and the letters 
     described in subparagraphs (A) and (B) of section 1634(a)(2) 
     of the Miscellaneous Trade and Technical Corrections Act of 
     2006 (title XIV of Public Law 109-280; 120 Stat. 1167).
       (e) Effective Period.--Duty-free treatment under this 
     section shall be in effect for the 10-year period beginning 
     on January 1, 2015.
                                 ______
                                 
  SA 3100. Mr. GRASSLEY (for himself and Mr. Nelson) submitted an 
amendment intended to be proposed by him to the bill H.R. 3474, to 
amend the Internal Revenue Code of 1986 to allow employers to exempt 
employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of the 
employer mandate under the Patient Protection and Affordable Care Act; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

         TITLE _--CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS

     SEC. _01. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       (a) Employment Taxes.--Chapter 25 is amended by adding at 
     the end the following new section:

     ``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

       ``(a) General Rules.--For purposes of the taxes, and other 
     obligations, imposed by this subtitle--
       ``(1) a certified professional employer organization shall 
     be treated as the employer (and no other person shall be 
     treated as the employer) of any work site employee performing 
     services for any customer of such organization, but only with 
     respect to remuneration remitted by such organization to such 
     work site employee, and
       ``(2) exclusions, definitions, and other rules which are 
     based on the type of employer and which would (but for 
     paragraph (1)) apply shall apply with respect to such taxes 
     imposed on such remuneration.
       ``(b) Successor Employer Status.--For purposes of sections 
     3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
       ``(1) a certified professional employer organization 
     entering into a service contract with a customer with respect 
     to a work site employee shall be treated as a successor 
     employer and the customer shall be treated as a predecessor 
     employer during the term of such service contract, and
       ``(2) a customer whose service contract with a certified 
     professional employer organization is terminated with respect 
     to a work site employee shall be treated as a successor 
     employer and the certified professional employer organization 
     shall be treated as a predecessor employer.
       ``(c) Liability of Certified Professional Employer 
     Organization.--Solely for purposes of its liability for the 
     taxes, and other obligations, imposed by this subtitle--
       ``(1) a certified professional employer organization shall 
     be treated as the employer of any individual (other than a 
     work site employee or a person described in subsection (f)) 
     who is performing services covered by a contract meeting the 
     requirements of section 7705(e)(2), but only with respect to 
     remuneration remitted by such organization to such 
     individual, and
       ``(2) exclusions, definitions, and other rules which are 
     based on the type of employer and which would (but for 
     paragraph (1)) apply shall apply with respect to such taxes 
     imposed on such remuneration.
       ``(d) Treatment of Credits.--
       ``(1) In general.--For purposes of any credit specified in 
     paragraph (2)--
       ``(A) such credit with respect to a work site employee 
     performing services for the customer applies to the customer, 
     not the certified professional employer organization,
       ``(B) the customer, and not the certified professional 
     employer organization, shall take into account wages and 
     employment taxes--
       ``(i) paid by the certified professional employer 
     organization with respect to the work site employee, and
       ``(ii) for which the certified professional employer 
     organization receives payment from the customer, and
       ``(C) the certified professional employer organization 
     shall furnish the customer with any information necessary for 
     the customer to claim such credit.
       ``(2) Credits specified.--A credit is specified in this 
     paragraph if such credit is allowed under--
       ``(A) section 41 (credit for increasing research activity),
       ``(B) section 45A (Indian employment credit),
       ``(C) section 45B (credit for portion of employer social 
     security taxes paid with respect to employee cash tips),
       ``(D) section 45C (clinical testing expenses for certain 
     drugs for rare diseases or conditions),
       ``(E) section 45R (employee health insurance expenses of 
     small employers),
       ``(F) section 51 (work opportunity credit),
       ``(G) section 1396 (empowerment zone employment credit),
       ``(H) 1400(d) (DC Zone employment credit),
       ``(I) Section 1400H (renewal community employment credit), 
     and
       ``(J) any other section as provided by the Secretary.
       ``(e) Special Rule for Related Party.--This section shall 
     not apply in the case of a customer which bears a 
     relationship to a certified professional employer 
     organization described in section 267(b) or 707(b). For 
     purposes of the preceding sentence, such sections shall be 
     applied by substituting `10 percent' for `50 percent'.
       ``(f) Special Rule for Certain Individuals.--For purposes 
     of the taxes imposed under this subtitle, an individual with 
     net earnings from self-employment derived from the customer's 
     trade or business is not a work site employee with respect to 
     remuneration paid by a certified professional employer 
     organization.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Certified Professional Employer Organization Defined.--
     Chapter 79 is amended by adding at the end the following new 
     section:

     ``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS 
                   DEFINED.

       ``(a) In General.--For purposes of this title, the term 
     `certified professional employer organization' means a person 
     who has been certified by the Secretary for purposes

[[Page S3042]]

     of section 3511 as meeting the requirements of subsection 
     (b).
       ``(b) General Requirements.--A person meets the 
     requirements of this subsection if such person--
       ``(1) demonstrates that such person (and any owner, 
     officer, and such other persons as may be specified in 
     regulations) meets such requirements as the Secretary shall 
     establish with respect to tax status, background, experience, 
     business location, and annual financial audits,
       ``(2) computes its taxable income using an accrual method 
     of accounting unless the Secretary approves another method,
       ``(3) agrees that it will satisfy the bond and independent 
     financial review requirements of subsection (c) on an ongoing 
     basis,
       ``(4) agrees that it will satisfy such reporting 
     obligations as may be imposed by the Secretary,
       ``(5) agrees to verify on such periodic basis as the 
     Secretary may prescribe that it continues to meet the 
     requirements of this subsection, and
       ``(6) agrees to notify the Secretary in writing within such 
     time as the Secretary may prescribe of any change that 
     materially affects whether it continues to meet the 
     requirements of this subsection.
       ``(c) Bond and Independent Financial Review Requirements.--
       ``(1) In general.--An organization meets the requirements 
     of this paragraph if such organization--
       ``(A) meets the bond requirements of paragraph (2), and
       ``(B) meets the independent financial review requirements 
     of paragraph (3).
       ``(2) Bond.--
       ``(A) In general.--A certified professional employer 
     organization meets the requirements of this paragraph if the 
     organization has posted a bond for the payment of taxes under 
     subtitle C (in a form acceptable to the Secretary) in an 
     amount at least equal to the amount specified in subparagraph 
     (B).
       ``(B) Amount of bond.--For the period April 1 of any 
     calendar year through March 31 of the following calendar 
     year, the amount of the bond required is equal to the greater 
     of--
       ``(i) 5 percent of the organization's liability under 
     section 3511 for taxes imposed by subtitle C during the 
     preceding calendar year (but not to exceed $1,000,000), or
       ``(ii) $50,000.
       ``(3) Independent financial review requirements.--A 
     certified professional employer organization meets the 
     requirements of this paragraph if such organization--
       ``(A) has, as of the most recent review date, caused to be 
     prepared and provided to the Secretary (in such manner as the 
     Secretary may prescribe) an opinion of an independent 
     certified public accountant that the certified professional 
     employer organization's financial statements are presented 
     fairly in accordance with generally accepted accounting 
     principles, and
       ``(B) provides, not later than the last day of the second 
     month beginning after the end of each calendar quarter, to 
     the Secretary from an independent certified public accountant 
     an assertion regarding Federal employment tax payments and an 
     examination level attestation on such assertion.

     Such assertion shall state that the organization has withheld 
     and made deposits of all taxes imposed by chapters 21, 22, 
     and 24 of the Internal Revenue Code in accordance with 
     regulations imposed by the Secretary for such calendar 
     quarter and such examination level attestation shall state 
     that such assertion is fairly stated, in all material 
     respects.
       ``(4) Controlled group rules.--For purposes of the 
     requirements of paragraphs (2) and (3), all professional 
     employer organizations that are members of a controlled group 
     within the meaning of sections 414(b) and (c) shall be 
     treated as a single organization.
       ``(5) Failure to file assertion and attestation.--If the 
     certified professional employer organization fails to file 
     the assertion and attestation required by paragraph (3) with 
     respect to any calendar quarter, then the requirements of 
     paragraph (3) with respect to such failure shall be treated 
     as not satisfied for the period beginning on the due date for 
     such attestation.
       ``(6) Review date.--For purposes of paragraph (3)(A), the 
     review date shall be 6 months after the completion of the 
     organization's fiscal year.
       ``(d) Suspension and Revocation Authority.--The Secretary 
     may suspend or revoke a certification of any person under 
     subsection (b) for purposes of section 3511 if the Secretary 
     determines that such person is not satisfying the 
     representations or requirements of subsections (b) or (c), or 
     fails to satisfy applicable accounting, reporting, payment, 
     or deposit requirements.
       ``(e) Work Site Employee.--For purposes of this title--
       ``(1) In general.--The term `work site employee' means, 
     with respect to a certified professional employer 
     organization, an individual who--
       ``(A) performs services for a customer pursuant to a 
     contract which is between such customer and the certified 
     professional employer organization and which meets the 
     requirements of paragraph (2), and
       ``(B) performs services at a work site meeting the 
     requirements of paragraph (3).
       ``(2) Service contract requirements.--A contract meets the 
     requirements of this paragraph with respect to an individual 
     performing services for a customer if such contract is in 
     writing and provides that the certified professional employer 
     organization shall--
       ``(A) assume responsibility for payment of wages to such 
     individual, without regard to the receipt or adequacy of 
     payment from the customer for such services,
       ``(B) assume responsibility for reporting, withholding, and 
     paying any applicable taxes under subtitle C, with respect to 
     such individual's wages, without regard to the receipt or 
     adequacy of payment from the customer for such services,
       ``(C) assume responsibility for any employee benefits which 
     the service contract may require the organization to provide, 
     without regard to the receipt or adequacy of payment from the 
     customer for such services,
       ``(D) assume responsibility for hiring, firing, and 
     recruiting workers in addition to the customer's 
     responsibility for hiring, firing and recruiting workers,
       ``(E) maintain employee records relating to such 
     individual, and
       ``(F) agree to be treated as a certified professional 
     employer organization for purposes of section 3511 with 
     respect to such individual.
       ``(3) Work site coverage requirement.--The requirements of 
     this paragraph are met with respect to an individual if at 
     least 85 percent of the individuals performing services for 
     the customer at the work site where such individual performs 
     services are subject to 1 or more contracts with the 
     certified professional employer organization which meet the 
     requirements of paragraph (2) (but not taking into account 
     those individuals who are excluded employees within the 
     meaning of section 414(q)(5)).
       ``(f) Determination of Employment Status.--Except to the 
     extent necessary for purposes of section 3511, nothing in 
     this section shall be construed to affect the determination 
     of who is an employee or employer for purposes of this title.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (c) Conforming Amendments.--
       (1) Section 3302 is amended by adding at the end the 
     following new subsection:
       ``(h) Treatment of Certified Professional Employer 
     Organizations.--If a certified professional employer 
     organization (as defined in section 7705), or a customer of 
     such organization, makes a contribution to the State's 
     unemployment fund with respect to a work site employee, such 
     organization shall be eligible for the credits available 
     under this section with respect to such contribution.''.
       (2) Section 3303(a) is amended--
       (A) by striking the period at the end of paragraph (3) and 
     inserting ``; and'' and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) if the taxpayer is a certified professional employer 
     organization (as defined in section 7705) that is treated as 
     the employer under section 3511, such certified professional 
     employer organization is permitted to collect and remit, in 
     accordance with paragraphs (1), (2), and (3), contributions 
     during the taxable year to the State unemployment fund with 
     respect to a work site employee.'', and
       (B) in the last sentence--
       (i) by striking ``paragraphs (1), (2), and (3)'' and 
     inserting ``paragraphs (1), (2), (3), and (4)'', and
       (ii) by striking ``paragraph (1), (2), or (3)'' and 
     inserting ``paragraph (1), (2), (3), or (4)''.
       (3) Section 6053(c) is amended by adding at the end the 
     following new paragraph:
       ``(8) Certified professional employer organizations.--For 
     purposes of any report required by this subsection, in the 
     case of a certified professional employer organization that 
     is treated under section 3511 as the employer of a work site 
     employee, the customer with respect to whom a work site 
     employee performs services shall be the employer for purposes 
     of reporting under this section and the certified 
     professional employer organization shall furnish to the 
     customer any information necessary to complete such reporting 
     no later than such time as the Secretary shall prescribe.''.
       (d) Clerical Amendments.--
       (1) The table of sections for chapter 25 is amended by 
     adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations.''.
       (2) The table of sections for chapter 79 is amended by 
     inserting after the item relating to section 7704 the 
     following new item:

``Sec. 7705. Certified professional employer organizations defined.''.
       (e) Reporting Requirements and Obligations.--The Secretary 
     of the Treasury shall develop such reporting and 
     recordkeeping rules, regulations, and procedures as the 
     Secretary determines necessary or appropriate to ensure 
     compliance with the amendments made by this section with 
     respect to entities applying for certification as certified 
     professional employer organizations or entities that have 
     been so certified. Such rules shall include--
       (1) notification of the Secretary in the case of the 
     commencement or termination of a service contract described 
     in section 7705(e)(2) of the Internal Revenue Code of 1986 
     between such a person and a customer, and the employer 
     identification number of such customer, and

[[Page S3043]]

       (2) such other information as the Secretary determines is 
     essential to promote compliance with respect to the credits 
     identified in section 3511(d) of such Code, and

     shall be designed in a manner which streamlines, to the 
     extent possible, the application of requirements of such 
     amendments, the exchange of information between a certified 
     professional employer organization and its customers, and the 
     reporting and recordkeeping obligations of the certified 
     professional employer organization.
       (f) User Fees.--Subsection (b) of section 7528 is amended 
     by adding at the end the following new paragraph:
       ``(4) Certified professional employer organizations.--The 
     annual fee charged under the program in connection with the 
     ongoing certification by the Secretary of a professional 
     employer organization under section 7705 shall not exceed 
     $1,000.''.
       (g) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to wages for services performed on or 
     after January 1 of the first calendar year beginning more 
     than 12 months after the date of the enactment of this Act.
       (2) Certification program.--The Secretary of the Treasury 
     shall establish the certification program described in 
     section 7705(b) of the Internal Revenue Code of 1986, as 
     added by subsection (b), not later than 6 months before the 
     effective date determined under paragraph (1).
       (h) No Inference.--Nothing contained in this section or the 
     amendments made by this section shall be construed to create 
     any inference with respect to the determination of who is an 
     employee or employer--
       (1) for Federal tax purposes (other than the purposes set 
     forth in the amendments made by this section), or
       (2) for purposes of any other provision of law.

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